Niznekamskneftekhim · RUS:NKNC
Niznekamskneftekhim — Nizhnekamskneftekhim — Investor Presentation (June 2013)
23 slides from Niznekamskneftekhim's investor presentation, June 2013
Slide 1: Nizhnekamskneftekhim: The Leading Russian Petrochemical Company
Nizhnekamskneftekhim: The Leading Russian Petrochemical Company Investor presentation June 2013
Slide 2: Disclaimer
Disclaimer This Investor Presentation has been prepared by JSC “Nizhnekamskneftekhim” (“NKNK” or “Company”) for investors solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not p
Slide 3: NKNK at a glance
NKNK at a glance Leading market position Company overview Financials Rubbers: The largest Russian petrochemical production The largest producer of polyisoprene (RUB bln) 2010 2011 2012 complex located in Nizhnekamsk, Tatarstan (44% global market share) Production of more than 120 items in 4 ma
Slide 4: Key products
Key products Petrochemical products produced by the Company are widely used in everyday life as well as in production of other industrial goods 4
Slide 5: Business model
Business model Nizhnekamskneftekhim assets perimeter Revenue in 2012: RUB 130 487 mln Olefins and other Olefins and derivatives sold to third parties products and services: RUB 37 206 mln Other products: − Neonols − Polyethers Naphtha Ethylene − Ethylene glycol Propylene − Styrene Olefins complex
Slide 6: Investment highlights
Investment highlights Leading Russian petchem producer Investments in future growth − Largest Russian petrochemical complex − Previous investment wave led to substantial growth since 2010 − Leading player on the global rubber market − New investment program until 2017 will strengthen − Leading p
Slide 7: Favorable feedstock supply
Favorable feedstock supply There are two large naphtha suppliers (main feedstock for Naphtha production and consumption in Russia petrochemicals) in the vicinity of NKNK with annual capacity 35000 twice the amount of current Company demand. Close 30000 proximity is an advantage – feedstock supply lo
Slide 8: Other profitability factors
Other profitability factors Per capita plastics consumption (kg) USA Market growth: comparatively low plastics consumption per capita in Russia together with technologies renewal in main consuming sectors does and will stimulate future demand Europe growth. This is a fundamental factor. Japan Access
Slide 9: Market position
Market position Isoprene rubber (SKI) Butyl rubbers (BK/GBK) Butadiene rubbers (SKD) NKNK NKNK 6% 16% Global Rubber Market NKNK 44% Others CAGR 3.8% 56% Others 94% 2012-2017 Others 84% №1 Producer №3 Producer Player Polypropylene (PP) Polyethylene (PE) Polystyrene (GPPS/HIPS) NKNK NKNK 24% NKNK 16%
Slide 10: Rubbers
Rubbers Sales volumes (tonnes) and revenue (RUB mln) Segment information 59 586 800 000 Polybutadiene Butyl/Halobutyl 60 000 Main revenue driver – 46% share in 2012 Polyisoprene EPDM 700 000 58 343 42 379 Revenue 600 000 589 471 40 000 A leading player on the global market for many years 30 800
Slide 11: Plastics
Plastics Sales volumes (tonnes) and revenue (RUB mln) Segment information Polystyrene 800 000 32 090 Polypropylene 28 947 33 000 Most dynamic business area with current revenue 700 000 share of 26% Polyethylene 22 510 602 261 ABS 23 000 600 000 589 438 Revenue Includes three product types – poly
Slide 12: Olefins and others
Olefins and others Sales volumes (tonnes) and revenue (RUB mln) Segment information 1 200 000 Main segment products Revenue 23 031 25 000 Includes olefins and derivatives, as well as other 22 690 22 527 products and services, with 28% share of revenues 1 000 000 18 928 20 000 777 393 15 187 In t
Slide 13: Strategy
Strategy The strategy of the Company is focused on key Company products – rubbers and plastics – of which NKNK is a key market player. With further evolution goals in mind the Company has Strengthen market position as a global focused its’ activities on pre-investment development of a diversified pr
Slide 14: Social responsibility
Social responsibility In order to remain transparent on goals and practical results of corporate social policies the Company publishes a Sustainable Development Report on an annual basis. The 2012 report received an A+ rating as per GRI guidelines from an independent international auditor. NKNK is a
Slide 15: Key financials (YoY)
Key financials (YoY) RUB mln 2010 2011 2012 Due to softening prices on global Revenue 96,516 126,021 130,487 markets Company profitability has COGS (excl. D&A) (69,778) (88,212) (93,242) slightly declined in second half of 2012, although it is still high Gross profit (excl. D&A) 26,738 37,809 37,2
Slide 16: Key financials (QoQ)
Key financials (QoQ) RUB mln Q1’2012 Q2’2012 Q3’2012 Q4’2012 Q1’2013 Revenue 35,968 32,310 31,365 30,844 31,983 The situation has stabilized in COGS (excl. D&A) (24,548) (22,855) (21,869) (23,970) (23,218) Q1’2013 with revenue growing by 3.7% and EBITDA by 21.4% relative Gross profit (excl. D&A) 1
Slide 17: Debt profile
Debt profile Debt profile as per 01.06.2013 (RUB mln) During the last four years NKNK was continuously deleveraging both in absolute numbers, as well as in terms of Net Debt/EBITDA 2 500 Credit currency risks are nullified by the revenue structure (half of 2 000 NKNK revenue is denominated in US
Slide 18: Dividend yield
Dividend yield Dividend policy Announced dividends (RUB млн) The total amount of dividends is set to be not less than 15% of (RUB bln) 2008 2009 2010 2011 2012 NKNK net income (RAS accounts) for a respective year Announced 567 128 2 152 4 319 5 088 dividends - In the last years NKNK had a stable p
Slide 19: Corporate Governance
Corporate Governance Key aspects z 11 members, including 2 INEDs Board of Directors z The Board is responsible for determining NKNK’s strategy, development priorities, approving long-term plans and key programs for the operational activity, etc. z Audit Committee z 5 members z Responsible for the su
Slide 20: Corporate governance
Corporate governance Key aspects z Charter z General Shareholders Meeting statute z Board of Directors statute z Statute on the procedures of the Audit Committee z Executive offices statute z Dividends policy statute Internal corporate z Independent directors statute governance documents z Informati
Slide 21: Board of Directors
Board of Directors Albert Shigabutdinov Chairman of the Board, CEO of TAIF Vladimir Busygin Deputy Chairman of the Board, CEO of NKNK Radik Sergey Nahil Maganov Ravil Zaripov Jelko Milich Gaizatullin(1) Alekseev(1) Minister if First Deputy CEO Finance Minister Industry and Executive of First Deputy
Slide 22: Management Board
Management Board Vladimir Busygin Khamit CEO (Chairman Gilmanov of the Management Board) First Deputy CEO -Chief Engineer Strategy and Personnel and Operations Sales Directors of Plants Finance Other Igor Oleg Nesterov Anton Butaev Igor Larionov Vasily Shuisky Leonid Kutuev Bogomazov Deputy CEO, Dep
Slide 23: Nizhnekamskneftekhim
Nizhnekamskneftekhim Ordinary shares market cap RUB 40 755 mln 35,00 60 000 The largest petrochemical complex in Russia 30,00 50 000 25,00 40 000 20,00 30 000 Attractive petrochemical market growth 15,00 prospects 10,00 20 000 5,00 10 000 0,00 0 Low-cost producer Price, RUB Market cap, RUB mln
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